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Companies 2018-08-03T00:59:02+00:00

We take care of the entire incorporation process, from beginning to end. Here we have identified the procedure, separating it in 4 fundamental steps and a final complementary one:

1) Legal Advice.
2) Foreign Investor ID.
3) Foreign Company Incorporation in Chile.
4) Internal Revenue Service and other procedures.
5) Other Services.

1. LEGAL ADVICE

The first step to start working on a project is planification. Our team provides general advice via video-conference or in-person (Chilean Office), you can make an online appointment here.

Also, we provide specific law reports and business viability evaluations regarding aspects such as environmental, financing and taxation law according to Chilean rules and regulation. The characteristics and cost depends on each client and matter, they can be ordered here.

Once the decision is made, the immediate next step will to obtain the foreign investor ID.

2. FOREIGN INVESTOR ID

It’s a special document, different from the visa and permits system, made for foreigners willing to invest in Chile. Our law gives a broad meaning to the word “investment”, being applicable to contracts and agreements regarding real estate, constitution, acquisition or incorporation of companies, apply to Chilean accelerator programs or funds such as “Start-Up Chile”, and overall, any agreement or contract which requires the inscription of it in a public record to exist.

Therefore, anyone that wants to make business in Chile, and is not a citizen, needs to apply for a “foreign investor ID.” Once obtained, the individual is identified by the Internal Revenue Service, being able to validly take part in agreements.

We remark that a foreign investor can apply for this ID, without necessarily applying for a visa or permit. Both institutions and systems are parallel, they are even a matter of two different public organisms. Also it’s important to add that –unlike permits or visas- you can apply for a Foreign Investor ID without leaving your country, as long as you write a power of attorney viable in Chilean law.

Finally, there is a specific and unique requirement for this ID. Everyone willing to apply, regardless if it’s in Chile or from abroad, must name someone with residency in Chile to represent him/her before “Servicio de Impuestos Internos” (Chilean IRS), which can be a Chilean national or immigrant with definitive permit. To find out if you can apply to this permit in investor’s quality please fill up the following form.

KEY POINTS OF THE “FOREIGN INVESTOR ID”

  • Mandatory for business or entrepreneurship in Chile.
  • Parallel and different than the “visa and permit system”.
  • You can apply from abroad.
  • Requires you to name someone to represent you against “Servicio Impuestos Internos”.
  • Quick procedure. Once you apply, you immediately obtain a transitory permit.

What is the “Foreign investor ID”? 2017-09-28T17:53:37+00:00

It’s a numerical, individual code that identifies the foreign investor to the tax authority and other public services in Chile. Contrary to other permits, this institution doesn’t require the intention to remain the country. It only allows making business or perform contracts and agreements in Chile.

What is it for? 2017-05-25T10:29:14+00:00

When obtained, it allows the investor to perform/engage contracts and agreements that are essential for business. Such as, buying or renting property, creating corporations or entering them as a partner and realization of bank operations amongst others. If you wish to entrepreneur in Chile, you must apply for it.

If I already applied for a temporary permit, do I still require it? 2017-05-25T10:30:03+00:00

Yes, there are different and parallel institutions in which a specific solicitude doesn’t affect the other. In fact, the “foreign investor ID” is granted by the Chilean tax department (Servicio de Impuestos Internos) while permits are given by “Foreign and Immigration department”.

They also differ in how fast they can be obtained. You can apply and obtain the “foreign investor ID” immediately, yet your application for a Visa or permit can take somewhere between 6 and 10 months.

What are the requirements to obtain it? 2017-09-28T18:34:37+00:00

You must fulfill in a specific form acquired from the tax department. Along with the standard information (name, passport number, address, nationality, etc) there is a special requirement in this procedure. You must know a Chilean or a foreigner with a definitive permit which is willing to sign the form in order to be accountable for your information against the tax institution.

Can I realize this procedure without travelling to Chile? 2017-05-25T10:31:00+00:00

Yes, this procedure and its own requirements fit perfectly in the services we provide. If you already have a Chilean or foreigner with a “definitive permit” willing to sign for you against the tax department, we can coordinate the rest of the requirements online.

In “Vivir en Chile” we have experience advising foreign operations and procedures. Be confident to ask about any matter or inquiry, we speak your language.

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3. FOREIGN COMPANY INCORPORATION IN CHILE

In order to start operating in Chile, companies may choose between three different options:

The range of prices vary regarding the specific requirements and structure of each foreign company, starting from $ 600 USD to $ 3500 USD depending on the type of business. Ask for a quotation here free of charge.

1) Branch or Agency of a foreign legal entity.

As stated, this options doesn’t create an independent company in Chile, but establishes a subsidiary of a main, foreign entity.

To achieve it, our team elaborates a public deed containing legal and financial information about the foreign company and the documents that must be legalized according to Chilean laws and procedures.

Relevant aspects regarding Branchs or Agencies: 2017-10-02T16:27:28+00:00

1.1- Management.

The management is given to the agent vested with broad authority by the public deed.

1.2- Capital.

The amount of capital to be incorporated is established by the client, since there is no minimum quantity given by law (only exception can be found in regulated markets). It’s important to add that this amount might be increased or reduced by executing an amendment of the public deed.

1.3- Profits.

There is no maximum or minimum percentage of profits to be remitted abroad. Our legal system only requires that there is no tax obligation unpaid and that the agency has complied with foreign investment regulations.

1.4- Liability.

Obviously, the foreign entity is liable for all activities executed by the branch in Chile, which isn’t limited only to assets located in our country.

1.5- Taxation.

Income tax is calculated from the main or world source income. The Internal Revenue Service may assess and conduct investigations regarding the taxable income, if the information provided is objected.

2) Establishing an autonomous Chilean Corporation.

The other alternative, besides establishing a branch of the foreign legal entity, its incorporating an autonomous-independent Chilean Corporation. This is done by our team elaborating a public-deed on behalf of the investor we have previously obtained the “Foreign Investor Id”.

Types of corporations in Chile: 2017-09-25T18:46:32+00:00

Corporations in Chile can be Publicly-held Corporations, Closely-held Corporations, Simplified Corporations, Limited Liability Companies, Individual Limited Liability Companies and Collective Associations.

That being said, the most recommended corporations to make business in Chile are Publicly-held Corporations, Closely-held Corporations and Simplified Corporations:

2.1- Publicly-held Corporations and Closely-held Corporations:

Publicly-held Corporations are intended for those companies in Chile that have 500 or more shareholders or at least 10% of those shares belong to 100 shareholders and to those companies willing to publicly trade their shares.

This kind of companies have special obligations and are both regulated and supervised by the Chilean “Superintendence of Securities and Insurance”.

Simply, Closely-held Corporations are those who are not Publicly-held. Both of them are ruled by the following regulations:

Incorporation: They are incorporated by a public deed by at least two incorporators. This can be done via a Written or Electronic Registration System, and certain minimum legends are required by law to be included.

Capital: Must be paid within three years from the execution of the incorporation deed, or according to what it’s stated on the company by-laws. Later, it can always be increased or reduced by executing an amendment.

Liability: Shareholders are accountable for the value which their shares represent.

Transfer of shares: Shareholders can transfer their shares without limitation, but the ones written in the by-laws (closely-held corporations only). To be effective to third-parties, the transfer of shares must be annotated in a shareholders registry.

Dissolution: Corporations are usually dissolved when its duration expires, unless its incorporated to perpetuity. Also the company by-laws may define certain cases in which dissolution is applicable. Yet, there will be “legal-dissolution” in certain cases, such as if it’s agreed by 2/3 of the shareholders or if the company is merged into another one.

Management: A “Board of Directors” must be chosen by the shareholders to manage the corporation. Then the board can delegate its authority to a General Manager entrusted to act according to the Board of Directors and have the judicial representation.

2.2- Simplified Corporation or Single-Share Corporation:

This corporation is similar to the Closely-Held Corporation, yet it has less formalities and administrative limitations, being preferred by entrepreneurs and small to medium institutions. Also, one of the greater differences is that it can be incorporated by only one shareholder.

Another distinctive difference is that the management of Simplified Corporation is freely stablished in the company by-laws. Therefore, the administration can choose between a board of directors, committee, sole administrator, etc.

4. INTERNAL REVENUE SERVICE AND OTHER PROCEDURES

Once the company has been incorporated, our team complies with Chilean Tax regulation fulfilling a “Start of business declaration” towards the IRS (Servicio de Impuestos Internos in Chile / National Tax Department). In this declaration the company must state information regarding paid/unpaid capital, share organization, domicile and commercial activity.

Finally, even if there is no legal prohibition for foreigners to incorporate autonomous companies in Chile, the IRS demands that they have a Chilean legal representative able to act towards the IRS. If the client doesn’t have a Chilean agent available, our team also will take care of this requirement.

Again our prices vary according to the capital to be declared, and if the client will or will not have a chilean agent of its own. That being stated, the price ranges from $ 50 USD to $ 300 USD.

5. OTHER SERVICES

Our team is the best partner to help make your business operate in Chile. We advise companies in early or expansion stages, giving integral services covering all legal and economic aspects you may require.

Vivir en Chile’s team offers a complete service for its clients if needed. The following services are listed below:

List of Relocation Specialized Services by client’s need 2017-09-25T19:29:55+00:00

1) Search for a property, house or apartment to live/rent.

2) Search for a main office or headquarter.

3) Cultural induction, tourism, etc.

4) Assistance for vehicle purchase/rent.

5) Search for house managers (nanny, gardener, etc) if needed.

6) Guided search for a kinder garden, school or university for the children.

7) Assistance for in-house items including furniture and household appliances.

Pricing of the mentioned relocation services depend on the client’s specifications and are presented in a quotation format to define which one is more convenient in each case.

INCORPORATE YOUR BUSINESS TODAY!

Make an online appointment with our lawyers experts
in company incorporation procedures by clicking here.